World Bank slashes Russia growth forecasts

Monday, 8 Oct 2012 | 5:03 AM ET

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MOSCOW, Oct 8 (Reuters) - The World Bank on Monday slashed its economic forecasts for Russia and cautioned that, even as growth slows, labour shortages show the world's ninth-largest economy is overheating.

The global development lender cut its forecast for economic growth this year to 3.5 percent from 3.9 percent previously, down from last year's growth of 4.3 percent. It lowered its 2013 outlook to 3.6 percent from 4.1 percent.

"Whereas early in the year, growth was rising and inflation declining, now growth is declining and inflation rising," the World Bank said in its twice-yearly Russian Economic Report.